Balance Sheet: Liabilities and Stockholders’ Equity
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
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Adobe Inc., consolidated balance sheet: liabilities and stockholders’ equity
US$ in millions
Based on: 10-K (reporting date: 2025-11-28), 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27).
Overall, the liabilities of the company demonstrate a consistent upward trend from 2020 through 2024, with a slight decrease in 2025. Stockholders’ equity exhibits volatility, increasing initially but declining in the later periods examined. A significant portion of the changes in stockholders’ equity is attributable to fluctuations in treasury stock.
- Current Liabilities
- Current liabilities increased substantially from $5,512 million in 2020 to $10,521 million in 2024, representing a near doubling over the period. This growth is primarily driven by increases in accrued expenses and other current liabilities, and deferred revenue. A slight decrease is observed in 2025, falling to $10,200 million. The current portion of debt also contributes to this increase, rising significantly in 2024 before becoming unavailable in 2025.
- Long-Term Liabilities
- Long-term liabilities generally remained relatively stable between 2020 and 2022, fluctuating around $5,500 million. An increase is noted in 2024 and 2025, reaching $7,673 million in 2025. This increase is largely attributable to a substantial rise in debt excluding the current portion. Other liabilities also contribute to this trend, though to a lesser extent.
- Total Liabilities
- Total liabilities mirrored the trends in current and long-term liabilities, increasing from $11,020 million in 2020 to $16,125 million in 2024, before decreasing slightly to $17,873 million in 2025. The consistent growth suggests an increasing reliance on debt financing or an expansion of obligations.
- Stockholders’ Equity Components
- Additional paid-in capital consistently increased throughout the period, from $7,357 million in 2020 to $15,361 million in 2025, indicating ongoing equity issuance or stock-based compensation. Retained earnings also exhibited a strong upward trend, growing from $19,611 million to $45,354 million, reflecting cumulative profitability. However, these increases were offset by a significant and accelerating increase in treasury stock, which moved from -$13,546 million in 2020 to -$48,847 million in 2025. Accumulated other comprehensive loss remained relatively stable, with a slight increase in negative value over time.
- Stockholders’ Equity – Overall Trend
- Despite the growth in additional paid-in capital and retained earnings, stockholders’ equity peaked in 2024 at $14,105 million before declining substantially to $11,623 million in 2025. This decline is primarily driven by the increasing magnitude of treasury stock, suggesting significant share repurchase activity. The overall trend indicates a diminishing net equity position despite underlying profitability and capital raising.
- Specific Liability Accounts
- Accrued compensation costs and accrued expenses and other current liabilities show consistent growth throughout the period, suggesting increasing operational expenses. Deferred revenue also demonstrates a steady increase, indicating strong sales and pre-payments for future services. Several smaller liability accounts, such as excise taxes payable and fair value of derivative liabilities, begin to be reported in 2024, potentially indicating new business activities or reporting requirements.